News

Vancouver, Canada — Mawson Resources Limited (“Mawson”) or (the “Company”) (TSX:MAW) (Frankfurt:MXR) (PINKSHEETS: MWSNF) announces gold-cobalt results from 5 drill holes from the South Palokas prospect at the Company’s 100% owned Rajapalot Project in northern Finland. Nine holes with full assays remain to be reported from the 44 drill hole winter program.

Mr. Michael Hudson, Chairman and CEO states: “Drill results reported over the last few months from Rajapalot have substantially upgraded the project potential, with numerous higher-grade hits and gold-cobalt mineralization discovered in significant step outs across multiple prospect areas. At South Palokas 3 of 5 new holes with large step outs returned more than 50 g/t-metres gold equivalent while the deepest hole (PAL0197) returned the best result in the prospect of 32.0 metres @ 3.9 g/t AuEq metres. Mineralization at all prospects remain open at depth and across strike.”

Mawson completed 44 holes (PAL0159–PAL0201D1) for 15,059 metres (two short holes abandoned, one wedged hole) during the 2019 winter drill season. Results from 5 holes from South Palokas prospect are provided here (PAL0173, 193, 195, 197, 198, Tables 1-4). Nine holes with full assays remain to be reported, including holes drilled on the high-grade gold-cobalt trend at Raja (PAL0191 with visible gold) and PAL0199 from The Hut area (containing strongly sulphidic potassic scheelite-bearing rocks).

Noteworthy is the high cobalt content in PAL0198, with deeper drilling intersecting higher cobalt grades over wide zones compared to most holes on the property. The results tends to mimic the deeper drilling at the nearby Palokas prospect (where PAL0194 intersected 15.2 metres @ 8.5 g/t AuEq, 4.3 g/t gold (“Au”) and 2,566 ppm cobalt (“Co”) from 418.7 metres) with an increased Co:Au ratio. It appears that higher cobalt forms on the margins of high-grade gold mineralization at depth. The Rajapalot project is a significant and strategic gold-cobalt resource for Finland with the maiden resource positioned as one of Finland's current top three gold resources by grade and contained ounces and one of a small group of cobalt resources prepared in accordance with NI 43-101 policy within Europe.

Targeting at South Palokas this winter was based on earlier drilling (in particular PAL0016, 12.4 metres @ 4.0 g/t AuEq, 3.4 g/t Au, 368 ppm Co from 202.0 metres) and electromagnetic (EM) anomalies derived from both VTEMplus (airborne) and TEM (ground-based) surveys. Gold assays for PAL0173 were reported in March, 2019 (17 metres @ 3.0 g/t Au from 276.0 metres) and formed the basis for planning further drill testing. Drill hole PAL0198 was drilled to test continuity of mineralization from depth to surface and allow mapping of the near-surface extent of the sulphides (see Figure 1 with MALM geophysics). South Palokas now forms a body over a 170 metres strike, 30 metres wide and has been tested to 340 metres down plunge to date with EM conductors continuing to at least 700 metres down plunge.

The drill intersections reported here are largely of the potassic-iron (K-Fe) type, similar to the Raja prospect. The South Palokas mineralization forms at a similar stratigraphic position to the structurally inverted sequence at Raja. The NNW termination of the modelled TEM plate at Raja now lies only 750 metres from South Palokas and just as importantly, the Raja high-grade Au-Co trends directly under the South Palokas mineralization creating significant upside from surface prospects coalescing at depth.

Palokas and South Palokas share the same hydrothermal, post-metamorphic and structural-stratigraphic relationships, but are hosted by somewhat different rock types. Palokas is dominated by a magnesium-iron (Mg-Fe) host and South Palokas by the K-Fe host rocks although both are likely to be controlled by related, parallel to anastomosing subvertical faults and fractures. An upper, poorly mineralized garnet-bearing iron-rich rock at South Palokas possibly reflects the Palokas host position. A lower mineralized “footwall” position at South Palokas (see Figure 2) may represent the source of mineralized boulders found 200 metres to the southwest at the Boardwalk prospect.

Further drilling on the linear high grade trend at South Palokas and Palokas is required, but the similarities to the linear trend at Raja prospect, located at surface 1.4 kilometres SSE of the Palokas prospect, are immediately evident with NNW 100 metres wide and 600 metres long conductive plates trending 339 degrees below the existing mineral resources. Drilling on fans across the plunge of the Au-Co mineralization at Raja prospect has been the key to successfully targeting high-grade Au-Co mineralization.

On other matters, annual environmental inventory mapping, monitoring and area impact assessments are now underway at Rajapalot. Results will be utilized in future exploration planning and for the development of further low impact drilling and sampling methods to continually improve Mawson’s sustainable exploration outcomes.

Comment on Gold Equivalence Calculation

The gold equivalent ("AuEq") value used in the 2018 inferred resource and this press release was calculated using the formula: AuEq g/t = Au g/t + (Co ppm/608) with assumed metal prices of Co $30/lb; and Au $1,250/oz. AuEq varies with gold and cobalt prices. Approximate spot prices for gold and cobalt are currently $1,330/oz and $13/lb respectively.

The cobalt price has fallen 60% over the past year due mostly to an increase in supply from mines, many artisanal, in the Democratic Republic of Congo. Mawson considers cobalt retains strong fundamentals with demand remaining robust as the electric mobility industry continues to grow and, a long-term price of $20 to $30/lb cobalt (and $1250/oz Au) is therefore reasonable. Prices used in the 2018 inferred resource calculation have been maintained here to ensure consistency of reporting individual drill holes against prior news releases and the resource dated December 2018, and will be reviewed once all data from the current drill program is released. Within the December 2018 resource, cobalt contributes approximately 20% of in-situ value.

Technical and Environmental Background

Assuming a predominant stratabound control, the true thickness of the mineralized interval is interpreted to be approximately 90% of the sampled thickness. Quality control duplicates for all holes show good repeatability of gold assays. Intersections are reported with a lower-cut of 0.5 g/t gold or 304 ppm Co over 2 metre lower cut, except where indicated. No upper cut-off was applied.

Four diamond drill rigs (K3 & K8) from the Arctic Drilling Company OY (“ADC”), Kati OY (“Kati”) and MK Core Drilling OY (“MK”), all with water recirculation and drill cuttings collection systems were used for the drill program. Core diameter is NQ2 (50.7 mm). Core recoveries were excellent and average close to 100% in fresh rock. After photographing and logging in Mawson’s Rovaniemi facilities, core intervals averaging 1 metre for mineralized samples and 2 metres for barren samples were cut in half at the Geological Survey of Finland (GTK) core facilities in Rovaniemi, Finland. The remaining half core is retained for verification and reference purposes. Analytical samples were transported by Mawson personnel or commercial transport from site to the CRS Minlab Oy facility in Kempele, Finland. Samples were prepared and analyzed for gold using the PAL1000 technique which involves grinding the sample in steel pots with abrasive media in the presence of cyanide, followed by measuring the gold in solution with flame AAS equipment. Multi-element assays, including cobalt are determined using the ICP-MS method (IMS-230) of MS Analytical shipped directly from the CRS Minlab Oy facility. The QA/QC program of Mawson consists of the systematic insertion of certified standards of known gold content, duplicate samples by quartering the core, and blanks the within interpreted mineralized rock. In addition, CRS and MS Analytical insert blanks and standards into the analytical process. The qualified person for Mawson's Finnish projects, Dr. Nick Cook, President for Mawson and a Fellow of the Australasian Institute of Mining Metallurgy has reviewed and verified the contents of this release.

NI 43-101 Technical Report

On December 19, 2018, Mawson filed an independent National Instrument 43-101 Technical Report (the “NI 43-101 Technical Report”) on the Mineral Resource Estimate for the Raja and Palokas Prospects, at the 100% owned Rajapalot Project in Finland, (the “NI 43-101 Technical Report”), in support of the Company’s news release dated December 17, 2018. The NI 43-101 Technical Report was authorized by Mr. Rod Webster of AMC Consultants Pty Ltd (“AMC”) of Melbourne, Australia, and Dr. Kurt Simon Forrester of Arn Perspective of Surrey, England. Each of Mr. Webster and Dr. Forrester are independent “qualified persons” as defined by National Instrument 43-101. The NI 43-101 Technical Report may be found on the Company’s website at www.mawsonresources.com or under the Company’s profile on SEDAR at www.sedar.com.

About Mawson Resources Limited (TSX:MAW, FRANKFURT:MXR, PINKSHEETS:MWSNF)

Mawson Resources Limited is a sustainable and ethical exploration and development company. Mawson has distinguished itself as a leading Nordic Arctic exploration company with a focus on the flagship Rajapalot gold-cobalt project in Finland, a significant and strategic gold-cobalt resource for Finland with the maiden resource positioned as one of Finland's current top three gold resources by grade and contained ounces and one of a small group of cobalt resources prepared in accordance with NI 43-101 policy within Europe.

Forward-Looking Statement

This news release contains forward-looking statements or forward-looking information within the meaning of applicable securities laws (collectively, "forward-looking statements"). All statements herein, other than statements of historical fact, are forward-looking statements. Although Mawson believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate, and similar expressions, or are those, which, by their nature, refer to future events. Mawson cautions investors that any forward-looking statements are not guarantees of future results or performance, and that actual results may differ materially from those in forward-looking statements as a result of various factors, including, but not limited to, capital and other costs varying significantly from estimates, changes in world metal markets, changes in equity markets, planned drill programs and results varying from expectations, delays in obtaining results, equipment failure, unexpected geological conditions, local community relations, dealings with non-governmental organizations, delays in operations due to permit grants, environmental and safety risks, and other risks and uncertainties disclosed under the heading "Risk Factors" in Mawson's most recent Annual Information Form filed on www.sedar.com. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, Mawson disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise.

Figure 1: Plan of South Palokas prospect area indicating drill results, the outline of 43-101 resource (blocks above 2 g/t AuEq), modelled ground TEM plates over Lidar background with superimposed mise-á-la-masse contours (note the strong correlation of width of near-surface conductor and 2018 resource boundary). For more detailed location information, refer to press release of April 23, 2019. Note that Figure 3 is essentially a view down onto the plane of the northwest dipping TEM conductors.

Figure 2: Longitudinal section at South Palokas prospect showing the considerable area (hatched pattern) to be tested with future drill programs. The view is towards 063 degrees. The outlines of the high-grade resources are shown along with the modelled TEM plates. See Figure 1 for plan view location of the section.

Figure 3: Contoured projection of grade-width intersections in gold equivalent terms made onto a northwesterly dipping plane (i.e. the view is looking down on an angle (60 degrees) from the northwest towards the southeast). Note the large hatched area in this projection showing the area to the north (left) and down plunge to the NW with just a single drill hole. The TEM conductors have been removed for simplicity, but lie within the surface of this image.

Table 1: Collar Information from 2019 Winter drilling at the Rajapalot Project (Finnish Grid, Projection KKJ3)

Table 2: Better intersections report from the 2019 Winter Drill Program.
Intersections are reported with a lower cut of 0.5g/t gold over 2 metre lower cut except where highlighted with **. No upper cut-off was applied.

Table 3: Individual assay data from key drill holes reported in this release.

Table 4: Compilation of South Palokas intersections greater than 10 g/t * metres (AuEq). Note that three of the top seven are reported here for the first time.